Tag Archives: dark money

Earlier this week, the EPA filed its Brief in Opposition to the Motion to Alter or Amend Judgment in Marquette County Road Commission v. EPA, requesting that Judge Robert Holmes Bell stick with his dismissal of the case. Just a day later, State Senator Tom Casperson, chief political architect of the MCRC lawsuit, was defeated by Jack Bergman in his primary bid to run against Lon Johnson for Dan Benishek’s seat in the U.S. House of Representatives.

Prospects for the haul road are dimmer than ever, reduced to a fine point of administrative law — namely, whether EPA’s objections constitute “final agency action” or are merely “an interlocutory step” that continues the administrative process. (If the latter, the case remains dismissed.) In the likely event of the lawsuit’s failure, Stand UP, the dark money organization funding it, might fold or it might try to convert itself to other political purposes. As a 501(c)(4) it can legally do that, as long as it continues to satisfy the vague requirements of a “social welfare” organization.

Casperson still has two years left to serve as a Michigan State Senator; and while he was unable to translate gripes about federal overreach into victory on a bigger political stage (to hear him tell it, people below the Mackinac Bridge just don’t get it), Bergman, the Republican candidate, seems just as hostile to effective environmental regulation. He is, for instance, an advocate of the REINS Act (S. 226 and H.R. 427), a cynically designed piece of polluter-friendly legislation that aims to undermine rules like the Clean Water Act and allow politicians and lobbyists to second-guess science. So it’s important to remember that the Road Commission’s lawsuit over the haul road has always been bound up with a larger, coordinated political project, and that project will continue well after the judge considers the last brief in this case.

A ProPublica investigation of dark money organizations lends context and additional color to some of what I had to say a a short while ago about the Marquette County Road Commission’s lawsuit against the EPA.

Sponsored by State Senator Tom Casperson, the Republican representing Michigan’s 38th district, the MCRC lawsuit is being funded by a non-profit organization called Stand UP. Stand UP is exactly the kind of dark money organization profiled by ProPublica: it’s a special kind of non-profit, a 501c4 “social welfare” organization that is not required by law to disclose the names of donors. It does not have to confine its fundraising and expenditures to the MCRC lawsuit or any other specific purpose. It is a trough of dark money that can serve any number of political efforts.

So, as I tried to suggest in a series of posts on the MCRC complaint (here, here, here and here), while the lawsuit is nominally over a haul road that will serve both mining and timber companies, it also appears to be part of a larger, coordinated effort to sideline federal regulators, stifle local environmental watchdogs, and arrogate the authority and power to direct economic development in the Upper Peninsula to a set of undisclosed actors and moneyed interests.

Now, as Robert Faturechi reports, with efforts in 38 states to make non-profit organizations like Stand UP more accountable and transparent gaining ground, powerful conservative groups are “coaching” allies on how to fight back against any new legislation requiring the disclosure of dark money sources. The tactics they recommend should sound familiar:

Get the debate to focus on an “average Joe,” not a wealthy person. Find examples of “inconsequential donation amounts.” Point out that naming donors would be a threat to “innocents,” including their children, families and co-workers.
And never call it dark money. “Private giving” sounds better.

They urge dark money groups to claim the victim’s mantle and to see conservatives as “a persecuted class,” according to one January 2016 memo Faturechi uncovered. It’s “all part of a plan to choke off our air supply of funding,” they warn.

The documents presented by Faturechi were distributed at a conference held in Grand Rapids by The State Policy Network. The Network “calls pro-regulation activists ‘enemies of debate,’” and generally takes the line that regulation quashes freedom and criminalizes belief — a refrain often heard from climate change denialists — and that transparency will only threaten privacy.

The State Policy Network brings together conservative and tea-party organizations from around the country dedicated to “advancing freedom and making a difference,” so it’s well positioned to coordinate local efforts like the MCRC lawsuit against the EPA with other state, regional and national causes. In Michigan, the Network’s member organization is the Mackinac Center for Public Policy. Just last week, they ran a widely shared update (303 “likes” and counting) on the MCRC lawsuit in which Casperson crows about the progress they’ve made in the discovery phase of the suit and wails about prejudicial treatment at the EPA.

When it comes to parceling out the land, water and future of the Lake Superior region to the highest bidders, few have matched the auctionary zeal demonstrated a couple of years ago by David Dill, a member of Minnesota’s House of Representatives. In the debate over the proposed Boundary Waters Land Exchange, Dill was among those urging that the state should exchange School Trust Lands in the Boundary Waters area for 30,000 acres of Superior National Forest. Since by law Minnesota would be bound “to secure maximum long-term economic return” from lands thus acquired, Dill proclaimed, “we should mine, log, and lease the hell out of that land.”

Dill understood this much: if there is hell to be found in Superior National Forest, there is probably no better way to bring it out.

The unanswered question in Minnesota and throughout the Lake Superior region is not, however, theological: it’s whether extractive industries and the developments they bring will actually deliver “long-term” economic benefit for the region, and not just a short-term spurt or boom, or another period of destructive plunder followed by long-term decline. That is not just a question up for debate by economists and other experts; it is, at root, a political question.

As I’ve suggested in my first two posts in this series, the complaint filed by the Marquette County Road Commission against the EPA is part and parcel of an effort to shut this question down, or exclude it from public consideration. This complaint is only incidentally about a haul road. It’s part of a political offensive that aims to stifle debate and hand the future of the region over to unseen powers. Those powers lurk under legal cover of the dark 501c4 “public welfare” organization funding the MCRC’s lawsuit against the EPA.

So with this lawsuit, the Road Commission pretends to political authority that goes way beyond building and maintaining Marquette County’s roads: it assumes the authority to direct economic development in Marquette County and decide what’s in the area’s best interest. In order to seize that authority, I’ve said, the complaint sets up an “anti-mining” straw man, and tries but fails to prove that the EPA had a “predetermined plan” to prevent the construction of County Road 595.

No surprise, then, that the argument gets especially tendentious whenever the complaint tries to demonstrate collusion or discover “anti-mining” attitudes within the ranks of the EPA itself; and where it comes up short, it raises questions about the motives and associations of those bringing these allegations.

Consider, for example, the report to Senator Carl Levin’s office by an unidentified “informant” (Exhibit 15), who alleged that at a meeting with “environmental and tribal groups,” EPA Regional Administrator Susan Hedman made remarks to the effect that:

1. the EPA will fight mining in Michigan,
2. that there will be no mining in the Great Lakes Basin,
3. that there was or will be an EPA sponsored Anti-Mining committee, and
4. that the KBIC [Keweenaw Bay Indian Community] tribe had received an EPA grant which [sic] they used the funds to sponsor an anti-mining activity.

The informant seems to have been lying in some places and exaggerating in others: Hedman claims she never made the remarks attributed to her. But the MCRC complaint doesn’t hesitate to repeat the informant’s false allegations, and it tries to build its case around Senator Levin’s staffer’s awkward summary of what she heard from an unnamed informant who proved untrustworthy in every particular.

True to pattern, the complaint casts both environmental groups and the KBIC as “anti-mining groups” as it doubles down on the informant’s lies. The detail about the EPA grants is wildly inflated. The EPA gave the tribe “hundreds of thousands of dollars,” the MCRC claims, even as the KBIC was “actively lobbying USEPA against local mining and against CR 595.” This turns the false report of an unspecified “anti-mining activity” to “actively lobbying,” and it neglects to mention that EPA grants to the KBIC are, in large part, to help the tribes cope with the lasting damage done by mining and industrialization. (In recent years, grants have supported things like a survey of tribal fish consumption habits to reduce health risks associated with contaminants in fish, or the tribal Brownsfield response program.)

The phrase “actively lobbying” is especially cheeky here, for a couple of reasons.

First, the Eagle Mine project went ahead without the full, prior and informed consent of the KBIC. A Section 106 hearing ignored testimony from tribal elders that the ground at Eagle Rock is sacred to the Ojibwe, and objections by the KBIC and the Ho Chunk to the location of the mine portal at Eagle Rock were summarily dismissed. Tribal appeals to the EPA went unheeded.

Second, if we are really going to start tracking lobbyists and money spent on lobbying efforts, then in all fairness let’s spread the sunshine around and give a full account of money and efforts spent actively lobbying for mining interests in northern Michigan and throughout the Lake Superior region over the last decade. Or if that is too arduous a task, a full accounting of the money behind this complaint would suffice.

The complaint also fails to mention that the EPA responded immediately to Senator Levin’s office with a full schedule of grants given to the KBIC and the charter of the “cross-media” mining group at EPA Region 5. Cross-media groups are formed to satisfy the Cross-Media Electronic Reporting Rule. The fearsome EPA-sponsored “Anti-Mining” group turned out to be a specter of the informant’s imagination, and really comes down to bureaucratic reshuffling in order to make electronic reporting easier. There’s just no red flag to raise.

Elsewhere, when the complaint tries to demonstrate “anti-mining” sentiment within the EPA itself, the best the MCRC can do is police tone. There is an EPA official who writes “sarcastically” to a colleague at the Army Corps of Engineers, and then there are a couple of sentences in a January 2011 email by Daniel Cozza, an EPA Section Chief. Cozza refers to Wisconsin as “the new front” and says that in a three-hour town hall meeting Governor Scott Walker was “pushing jobs” when promoting the Gogebic Taconite project.

I think the WI Governor’s additions to the Welcome to WI signs stating ‘Open for Business’ is a sign of things to come. I listened to the 3hour [sic] townhall meeting last night regarding the G-TAC or taconite mining project in the Gogebic Penokee range and sounds like they are pushing jobs.

This sounds pretty innocuous, and I am unsure where the offense is: “pushing jobs”? That’s a pretty apt description of the rhetorical tactics used to promote mining in midwestern districts and around the world for that matter. Job numbers are overstated, as Tom Power notes in his study of sulfide mining projects in Minnesota. In Wisconsin, Senator Tim Cullen, Chair of the Senate Select Mining Committee, said he was amazed that immediately upon signing a controversial mining bill into law in 2013, Scott Walker and his cronies were “telling the workers of Wisconsin, who need jobs, that the jobs are just around the corner….The people who understand the mining industry know the jobs are years away.” Sounds like they were being pretty pushy to me.

Of course, “front” might suggest a battle or military campaign, or it might imply that Cozza sees himself or the EPA as embattled, fighting against the encroachment of mining projects — which of course the EPA is, and will continue to be if it is going to protect the environment against the resurgence of mining all around Lake Superior. Forbes Magazine, hardly a bastion of environmental activism, struck the same note when it ran an article on Gogebic Taconite’s Chris Cline with the title: “Billionaire Battles Native Americans Over Iron Ore Mine”; Dale Schultz, a Republican State Senator who broke with his party to oppose Wisconsin’s mining legislation, said his conscience would not allow him to “surrender the existing environmental protections without a full and open debate”: no one gasped in horror and astonishment at the white-flag battleground metaphor. Mike Wiggins, Chair of the Bad River Band of Lake Superior Chippewa, did not mince words and declared the Gogebic project tantamount to “genocide,” as it would kill the wild rice crop. The list could go on.

So the real objection is that some people working at EPA are not enthusiastically on board with the agenda of the mining company and its development plans for the area. They’re not supposed to be; they’re supposed to protect the environment. The complaint is still far from proving that the EPA itself, when making its specific determinations about CR 595, acted with bias or according to a predetermined plan.

It’s interesting, however, that the complaint should make an example of Daniel Cozza and his attitudes toward Wisconsin mining. Cozza has a long history with the environmental regulation of mining in Wisconsin, and he was working in EPA Region 5 when the Crandon Mine project unraveled, due to the inability of the mine’s backers, which included Eagle Mine developers Rio Tinto and Kennecott Minerals, to meet tribal water quality standards and deliver appropriate environmental assurances. Cozza is said to have caused “consternation” when he reminded Crandon Mining in a letter of its “duty to look at the cumulative economic and environmental impacts” of other mining projects in the region; and it was this big picture perspective that prevailed when Governor Tommy Thompson signed a mining moratorium into law in 1998.

To many people inside and outside the mining industry, Crandon seemed to signal the end of mining in Wisconsin, and there are still bitter feelings within the industry about the failure of the Crandon project. Having lost in the courts and the legislative arena, the industry and its backers resorted to other means, achieving their first big comeback victory in Wisconsin with Scott Walker’s 2013 mining bill.

By signing it, the governor also obliterated his past. He had voted for the mining moratorium in 1998 as a member of the Wisconsin Assembly. As governor, Walker worked to ease regulations, and did a decisive about-face during his 2012 recall election, when he received a $700,000 contribution from Chris Cline and Gogebic Taconite. That mind-blowing, mind-changing contribution came via the Wisconsin Club for Growth, a dark money 501c4 like Stand U.P., the organization now putting up other people’s money — whose? — for the Marquette County Road Commission’s lawsuit against the EPA. Corruption is in the cards.

This week, the Michigan Senate unanimously passed a resolution brought to the floor by Senator Tom Casperson, who represents the 38th district. Senate Resolution 27 declares an official day to commemorate mining in Michigan. Mining Day will fall on September 6th.

It’s clever to create a holiday for mining on 9/06 — the area code of the Upper Peninsula. But it’s also a little strange that the holiday will fall on a Sunday in its inaugural year (so much for sabbath and the respite it promises from the workaday world). Labor Day falls on the 7th of this year, and on the 5th in 2016; so maybe Mining Day will help put the focus on the Upper Peninsula’s archetypal laborer, the miner. But as the text of the resolution never even uses the word “miner,” “worker,” “labor” or “laborer,” and notes only in passing that mining in the UP “attracted immigrants from around the world,” it might be a little hasty or naive to conclude this measure is being taken to honor the working men and women of the region.

Casperson himself promotes Mining Day as a day to recognize the role of mining “in the settling of Michigan’s Upper Peninsula” and as a “way of life” characteristic of the region, and in a press release, he added that the day would also be an opportunity to “celebrate and support responsible mining operations” in the state. So SR 27 doesn’t just look back to a bygone era of mining, but forward, positioning mining as a “growing industry” in Michigan. The adopted resolution even includes language about the “Limestone mines” in the news lately.

In this way, SR 27 tees up a second resolution that Casperson introduced: SR 28, another pro-mining measure that met with unanimous approval. In this resolution, the Senate expresses its unqualified “support for the renewed growth of mining in Michigan.”

This is not just boosterism or servile flattery. SR 28 actually serves a couple of important political functions.

First, it burnishes Casperson’s legislative track record at no political cost. Down the road, he can and probably will claim some responsibility for the jobs that mining companies create in the UP.

Second, SR 28 establishes legislative precedent. Casperson and others can point to this resolution and the unanimous support it received when introducing other pro-mining legislation or when confronted with challenges to mining projects already underway. Interviewed about the bill, Casperson made this explicit: “we will work to remove any remaining barriers that could inhibit the continued growth of responsible mining interests in Michigan.” No barriers to continued growth: but still, somehow, “responsible,” as if responsibility can be had without limits.

The barriers to growth Casperson has in mind are, first and foremost, the flimsy ones upheld, but barely, by the EPA in the face of the new mining boom. The federal agency has not prevented any mining projects in Michigan; but it has so far been the primary obstacle to the building of CR 595, which was originally planned as a haul route for Lundin’s Eagle Mine. The EPA entered and then upheld its objections to construction of the road, and denied the Michigan Department of Environmental Quality authority to permit the road. (The US Army Corps of Engineers along with the US Fish and Wildlife Service had also entered objections.)

Casperson elsewhere has tried to cast this as a standoff between state sovereignty and federal government intrusion. Now, with SR 28, Senator Casperson has enlisted the full body of the Michigan Senate in his crusade to cut that haul road through the Michigan wilderness, and show big government what’s what in Michigan. (He’s been on similar state-sovereignty kicks to reinstate wolf-hunts — which caused him some embarrassment when he was caught fabricating stories of children being stalked by wolves — and to prevent the limiting of emissions from wood-burning stoves by the EPA.)

Casperson is now colluding with the Marquette County Road Commission to sue the EPA over CR 595. So far, the Road Commission and affiliated CR 595 die-hards have created a 501c4 non-profit organization called Stand U.P., which says it will raise $500,000 to cover the lawsuit. But there’s no reason to stop there. As a 501c4, Stand U.P. can fund the EPA lawsuit as well as a broad range of activities in the name of improving the “social welfare” — a concept even the IRS calls “abstruse” and lacking any clear definition. 501c4 organizations are not required to disclose the names of donors, but Brian Cabell figures “it’s safe to say” that the money for Stand U.P. won’t come in “$5 contributions or bake sales or lemonade stands. It’s mostly corporate money.”

Even if the EPA lawsuit fails, then, there is little to prevent Stand U.P. from becoming (unless it already is) a trough of dark money. No wonder the Senator is eager to celebrate mining’s return to the Upper Peninsula.